☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Common Stock (par value $1.00 per share) | AOS | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated Filer | ☐ | |||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||
Emerging growth company | ☐ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net sales | $ | 663.9 | $ | 765.4 | $ | 1,300.8 | $ | 1,513.6 | ||||||||
Cost of products sold | 416.4 | 456.7 | 813.8 | 912.1 | ||||||||||||
Gross profit | 247.5 | 308.7 | 487.0 | 601.5 | ||||||||||||
Selling, general and administrative expenses | 155.9 | 178.7 | 329.7 | 363.4 | ||||||||||||
Severance and restructuring expenses | 6.1 | — | 6.1 | — | ||||||||||||
Interest expense | 2.5 | 3.4 | 4.7 | 5.4 | ||||||||||||
Other income | (4.0 | ) | (5.6 | ) | (8.2 | ) | (11.1 | ) | ||||||||
Earnings before provision for income taxes | 87.0 | 132.2 | 154.7 | 243.8 | ||||||||||||
Provision for income taxes | 19.2 | 30.1 | 35.2 | 52.4 | ||||||||||||
Net Earnings | $ | 67.8 | $ | 102.1 | $ | 119.5 | $ | 191.4 | ||||||||
Net Earnings Per Share of Common Stock | $ | 0.42 | $ | 0.61 | $ | 0.74 | $ | 1.14 | ||||||||
Diluted Net Earnings Per Share of Common Stock | $ | 0.42 | $ | 0.61 | $ | 0.74 | $ | 1.14 | ||||||||
Dividends Per Share of Common Stock | $ | 0.24 | $ | 0.22 | $ | 0.48 | $ | 0.44 | ||||||||
A. O. SMITH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (dollars in millions) (unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net earnings | $ | 67.8 | $ | 102.1 | $ | 119.5 | $ | 191.4 | ||||||||
Other comprehensive earnings (loss) | ||||||||||||||||
Foreign currency translation adjustments | 3.7 | (10.1 | ) | (14.3 | ) | 5.8 | ||||||||||
Unrealized net (losses) gains on cash flow derivative instruments, less related income tax benefit (provision) of $0.3 and $0.2 in 2020, ($0.2) and ($0.1) in 2019 | (0.8 | ) | 0.7 | (0.5 | ) | 0.6 | ||||||||||
Adjustment to pension liability, less related income tax provision of ($1.2) and ($2.4) in 2020 and ($0.8) and ($1.8) in 2019 | 3.7 | 3.1 | 7.3 | 6.0 | ||||||||||||
Comprehensive Earnings | $ | 74.4 | $ | 95.8 | $ | 112.0 | $ | 203.8 | ||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net sales | $ | 769.0 | $ | 636.9 | |||||||||||||||||||
Cost of products sold | 480.4 | 397.4 | |||||||||||||||||||||
Gross profit | 288.6 | 239.5 | |||||||||||||||||||||
Selling, general and administrative expenses | 166.5 | 173.8 | |||||||||||||||||||||
Interest expense | 1.0 | 2.2 | |||||||||||||||||||||
Other income | (5.0) | (4.2) | |||||||||||||||||||||
Earnings before provision for income taxes | 126.1 | 67.7 | |||||||||||||||||||||
Provision for income taxes | 28.4 | 16.0 | |||||||||||||||||||||
Net Earnings | $ | 97.7 | $ | 51.7 | |||||||||||||||||||
Net Earnings Per Share of Common Stock | $ | 0.60 | $ | 0.32 | |||||||||||||||||||
Diluted Net Earnings Per Share of Common Stock | $ | 0.60 | $ | 0.32 | |||||||||||||||||||
Dividends Per Share of Common Stock | $ | 0.26 | $ | 0.24 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net earnings | $ | 97.7 | $ | 51.7 | |||||||||||||||||||
Other comprehensive earnings (loss) | |||||||||||||||||||||||
Foreign currency translation adjustments | (1.4) | (18.0) | |||||||||||||||||||||
Unrealized net (losses) gains on cash flow derivative instruments, less related income tax benefit (provision) of $0.7 in 2021 and $(0.1) in 2020 | (2.0) | 0.3 | |||||||||||||||||||||
Adjustment to pension liability, less related income tax provision of ($1.3) in 2021 and ($1.2) in 2020 | 3.8 | 3.6 | |||||||||||||||||||||
Comprehensive Earnings | $ | 98.1 | $ | 37.6 |
(unaudited) March 31, 2021 | December 31, 2020 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 578.5 | $ | 573.1 | |||||||
Marketable securities | 87.0 | 116.5 | |||||||||
Receivables | 534.5 | 585.0 | |||||||||
Inventories | 312.8 | 300.1 | |||||||||
Other current assets | 45.4 | 43.3 | |||||||||
Total Current Assets | 1,558.2 | 1,618.0 | |||||||||
Property, plant and equipment | 1,227.1 | 1,222.6 | |||||||||
Less accumulated depreciation | (688.0) | (681.3) | |||||||||
Net property, plant and equipment | 539.1 | 541.3 | |||||||||
Goodwill | 547.3 | 546.8 | |||||||||
Other intangibles | 320.9 | 323.9 | |||||||||
Operating lease assets | 44.2 | 41.6 | |||||||||
Other assets | 97.1 | 89.1 | |||||||||
Total Assets | $ | 3,106.8 | $ | 3,160.7 | |||||||
Liabilities | |||||||||||
Current Liabilities | |||||||||||
Trade payables | $ | 547.4 | $ | 595.2 | |||||||
Accrued payroll and benefits | 55.1 | 74.6 | |||||||||
Accrued liabilities | 181.2 | 161.9 | |||||||||
Product warranties | 45.6 | 47.8 | |||||||||
Debt due within one year | 6.8 | 6.8 | |||||||||
Total Current Liabilities | 836.1 | 886.3 | |||||||||
Long-term debt | 99.6 | 106.4 | |||||||||
Product warranties | 96.0 | 94.5 | |||||||||
Long-term operating lease liabilities | 35.8 | 34.4 | |||||||||
Other liabilities | 190.3 | 190.8 | |||||||||
Total Liabilities | 1,257.8 | 1,312.4 | |||||||||
Stockholders’ Equity | |||||||||||
Class A Common Stock, $5 par value: authorized 27,000,000 shares; issued, 26,119,767 and 26,168,513 | 130.6 | 130.8 | |||||||||
Common Stock, $1 par value: authorized 240,000,000 shares; issued 164,587,827 and 164,539,081 | 164.7 | 164.6 | |||||||||
Capital in excess of par value | 528.7 | 520.4 | |||||||||
Retained earnings | 2,565.1 | 2,509.6 | |||||||||
Accumulated other comprehensive loss | (320.8) | (321.2) | |||||||||
Treasury stock at cost | (1,219.3) | (1,155.9) | |||||||||
Total Stockholders’ Equity | 1,849.0 | 1,848.3 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,106.8 | $ | 3,160.7 |
(unaudited) June 30, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 442.7 | $ | 374.0 | ||||
Marketable securities | 126.0 | 177.4 | ||||||
Receivables | 515.9 | 589.5 | ||||||
Inventories | 306.0 | 303.0 | ||||||
Other current assets | 53.8 | 56.5 | ||||||
Total Current Assets | 1,444.4 | 1,500.4 | ||||||
Property, plant and equipment | 1,170.5 | 1,156.9 | ||||||
Less accumulated depreciation | (636.7 | ) | (611.5 | ) | ||||
Net property, plant and equipment | 533.8 | 545.4 | ||||||
Goodwill | 544.0 | 546.0 | ||||||
Other intangibles | 329.5 | 338.4 | ||||||
Operating lease assets | 45.2 | 46.9 | ||||||
Other assets | 87.3 | 80.9 | ||||||
Total Assets | $ | 2,984.2 | $ | 3,058.0 | ||||
Liabilities | ||||||||
Current Liabilities | ||||||||
Trade payables | $ | 435.7 | $ | 509.6 | ||||
Accrued payroll and benefits | 59.7 | 64.6 | ||||||
Accrued liabilities | 188.4 | 143.7 | ||||||
Product warranties | 44.8 | 41.8 | ||||||
Debt due within one year | 6.8 | 6.8 | ||||||
Total Current Liabilities | 735.4 | 766.5 | ||||||
Long-term debt | 274.3 | 277.2 | ||||||
Pension liabilities | 13.8 | 27.8 | ||||||
Long-term operating lease liabilities | 37.5 | 38.7 | ||||||
Other liabilities | 265.1 | 281.0 | ||||||
Total Liabilities | 1,326.1 | 1,391.2 | ||||||
Stockholders’ Equity | ||||||||
Class A Common Stock, $5 par value: authorized 27,000,000 shares; issued , 26,172,713 and 26,180,885 | 130.9 | 130.9 | ||||||
Common Stock, $1 par value: authorized 240,000,000 shares; issued 164,534,881 and 164,526,709 | 164.5 | 164.5 | ||||||
Capital in excess of par value | 517.1 | 509.0 | ||||||
Retained earnings | 2,365.1 | 2,323.4 | ||||||
Accumulated other comprehensive loss | (355.8 | ) | (348.3 | ) | ||||
Treasury stock at cost | (1,163.7 | ) | (1,112.7 | ) | ||||
Total Stockholders’ Equity | 1,658.1 | 1,666.8 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 2,984.2 | $ | 3,058.0 | ||||
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Operating Activities | |||||||||||
Net earnings | $ | 97.7 | $ | 51.7 | |||||||
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 19.5 | 20.1 | |||||||||
Stock based compensation expense | 7.4 | 9.0 | |||||||||
Net changes in operating assets and liabilities: | |||||||||||
Current assets and liabilities | (13.2) | (15.1) | |||||||||
Noncurrent assets and liabilities | (7.0) | (11.6) | |||||||||
Cash Provided by Operating Activities | 104.4 | 54.1 | |||||||||
Investing Activities | |||||||||||
Capital expenditures | (17.1) | (12.8) | |||||||||
Investments in marketable securities | (24.4) | (38.8) | |||||||||
Net proceeds from sale of marketable securities | 54.0 | 78.0 | |||||||||
Cash Provided by Investing Activities | 12.5 | 26.4 | |||||||||
Financing Activities | |||||||||||
Long-term debt (repaid) incurred | (6.8) | 58.5 | |||||||||
Common stock repurchases | (67.0) | (56.7) | |||||||||
Net proceeds (payments) from stock option activity | 4.5 | (1.2) | |||||||||
Dividends paid | (42.2) | (39.0) | |||||||||
Cash Used in Financing Activities | (111.5) | (38.4) | |||||||||
Net increase in cash and cash equivalents | 5.4 | 42.1 | |||||||||
Cash and cash equivalents - beginning of period | 573.1 | 374.0 | |||||||||
Cash and Cash Equivalents - End of Period | $ | 578.5 | $ | 416.1 |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Operating Activities | ||||||||
Net earnings | $ | 119.5 | $ | 191.4 | ||||
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 40.0 | 38.4 | ||||||
Stock based compensation expense | 10.4 | 10.8 | ||||||
Net changes in operating assets and liabilities: | ||||||||
Current assets and liabilities | 35.9 | (75.9 | ) | |||||
Noncurrent assets and liabilities | (26.5 | ) | (21.0 | ) | ||||
Cash Provided by Operating Activities | 179.3 | 143.7 | ||||||
Investing Activities | ||||||||
Capital expenditures | (24.8 | ) | (36.5 | ) | ||||
Acquisition | — | (107.0 | ) | |||||
Investments in marketable securities | (91.1 | ) | (202.3 | ) | ||||
Net proceeds from sale of marketable securities | 140.1 | 293.8 | ||||||
Cash Provided by (Used in) Investing Activities | 24.2 | (52.0 | ) | |||||
Financing Activities | ||||||||
Long-term debt (repaid) incurred | (2.9 | ) | 137.3 | |||||
Common stock repurchases | (56.7 | ) | (132.6 | ) | ||||
Net payments from stock option activity | 2.6 | (0.5 | ) | |||||
Dividends paid | (77.8 | ) | (74.0 | ) | ||||
Cash Used in Financing Activities | (134.8 | ) | (69.8 | ) | ||||
Net increase in cash and cash equivalents | 68.7 | 21.9 | ||||||
Cash and cash equivalents - beginning of period | 374.0 | 259.7 | ||||||
Cash and Cash Equivalents - End of Period | $ | 442.7 | $ | 281.6 | ||||
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Class A Common Stock | |||||||||||||||||||||||
Balance at the beginning of period | $ | 130.8 | $ | 130.9 | |||||||||||||||||||
Conversion of Class A Common Stock | (0.2) | 0 | |||||||||||||||||||||
Balance at end of period | $ | 130.6 | $ | 130.9 | |||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Balance at the beginning of period | $ | 164.6 | $ | 164.5 | |||||||||||||||||||
Conversion of Class A Common Stock | 0.1 | $ | 0 | ||||||||||||||||||||
Balance at end of period | $ | 164.7 | $ | 164.5 | |||||||||||||||||||
Capital in Excess of Par Value | |||||||||||||||||||||||
Balance at the beginning of period | $ | 520.4 | $ | 509.0 | |||||||||||||||||||
Conversion of Class A Common Stock | 0.2 | 0 | |||||||||||||||||||||
Issuance of share units | (5.3) | (6.5) | |||||||||||||||||||||
Vesting of share units | (1.7) | (1.6) | |||||||||||||||||||||
Stock based compensation expense | 7.2 | 8.8 | |||||||||||||||||||||
Exercises of stock options | 2.6 | (0.1) | |||||||||||||||||||||
Stock incentives | 5.3 | 6.5 | |||||||||||||||||||||
Balance at end of period | $ | 528.7 | $ | 516.1 | |||||||||||||||||||
Retained Earnings | |||||||||||||||||||||||
Balance at the beginning of period | $ | 2,509.6 | $ | 2,323.4 | |||||||||||||||||||
Net earnings | 97.7 | 51.7 | |||||||||||||||||||||
Cash dividends on stock | (42.2) | (39.0) | |||||||||||||||||||||
Balance at end of period | $ | 2,565.1 | $ | 2,336.1 | |||||||||||||||||||
Accumulated Other Comprehensive Loss (see Note 15) | $ | (320.8) | $ | (362.4) | |||||||||||||||||||
Treasury Stock | |||||||||||||||||||||||
Balance at the beginning of period | $ | (1,155.9) | $ | (1,112.7) | |||||||||||||||||||
Exercise of stock options | 1.9 | (1.1) | |||||||||||||||||||||
Shares repurchased | (67.0) | (56.7) | |||||||||||||||||||||
Vesting of share units | 1.7 | 1.6 | |||||||||||||||||||||
Balance at end of period | $ | (1,219.3) | $ | (1,168.9) | |||||||||||||||||||
Total Stockholders’ Equity | $ | 1,849.0 | $ | 1,616.3 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Class A Common Stock | ||||||||||||||||
Balance at the beginning of period | $ | 130.9 | $ | 131.0 | $ | 130.9 | $ | 131.0 | ||||||||
Conversion of Class A Common Stock | — | (0.1 | ) | — | (0.1 | ) | ||||||||||
Balance at end of period | $ | 130.9 | $ | 130.9 | $ | 130.9 | $ | 130.9 | ||||||||
Common Stock | ||||||||||||||||
Balance at the beginning of period | $ | 164.5 | $ | 164.5 | $ | 164.5 | $ | 164.5 | ||||||||
Balance at end of period | $ | 164.5 | $ | 164.5 | $ | 164.5 | $ | 164.5 | ||||||||
Capital in Excess of Par Value | ||||||||||||||||
Balance at the beginning of period | $ | 516.1 | $ | 503.5 | $ | 509.0 | $ | 496.7 | ||||||||
Conversion of Class A Common Stock | — | 0.1 | — | 0.1 | ||||||||||||
Issuance of share units | — | (0.1 | ) | (6.5 | ) | (6.2 | ) | |||||||||
Vesting of share units | — | (0.1 | ) | (1.6 | ) | (2.0 | ) | |||||||||
Stock based compensation expense | 1.4 | 1.9 | 10.2 | 10.5 | ||||||||||||
Exercises of stock options | (1.1 | ) | 0.5 | (1.2 | ) | 0.6 | ||||||||||
Stock incentives | 0.7 | 0.9 | 7.2 | 7.0 | ||||||||||||
Balance at end of period | $ | 517.1 | $ | 506.7 | $ | 517.1 | $ | 506.7 | ||||||||
Retained Earnings | ||||||||||||||||
Balance at the beginning of period | $ | 2,336.1 | $ | 2,155.0 | $ | 2,323.4 | $ | 2,102.8 | ||||||||
Net earnings | 67.8 | 102.1 | 119.5 | 191.4 | ||||||||||||
Cash dividends on stock | (38.8 | ) | (36.9 | ) | (77.8 | ) | (74.0 | ) | ||||||||
Balance at end of period | $ | 2,365.1 | $ | 2,220.2 | $ | 2,365.1 | $ | 2,220.2 | ||||||||
Accumulated Other Comprehensive Loss (see Note 17) | $ | (355.8 | ) | $ | (338.4 | ) | $ | (355.8 | ) | $ | (338.4 | ) | ||||
Treasury Stock | ||||||||||||||||
Balance at the beginning of period | $ | (1,168.9 | ) | $ | (872.7 | ) | $ | (1,112.7 | ) | $ | (827.2 | ) | ||||
Exercise of stock options | 4.8 | 0.6 | 3.7 | (1.3 | ) | |||||||||||
Stock incentives and directors’ compensation | 0.4 | 0.2 | 0.4 | 0.2 | ||||||||||||
Shares repurchased | — | (87.0 | ) | (56.7 | ) | (132.6 | ) | |||||||||
Vesting of share units | — | 0.1 | 1.6 | 2.1 | ||||||||||||
Balance at end of period | $ | (1,163.7 | ) | $ | (958.8 | ) | $ | (1,163.7 | ) | $ | (958.8 | ) | ||||
Total Stockholders’ Equity | $ | 1,658.1 | $ | 1,725.1 | $ | 1,658.1 | $ | 1,725.1 | ||||||||
1. Basis of Presentation |
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
North America | |||||||||||||||||||||||
Water heaters and related parts | $ | 457.7 | $ | 447.8 | |||||||||||||||||||
Boilers and related parts | 46.5 | 41.5 | |||||||||||||||||||||
Water treatment products | 48.7 | 43.6 | |||||||||||||||||||||
Total North America | 552.9 | 532.9 | |||||||||||||||||||||
Rest of World | |||||||||||||||||||||||
China | $ | 199.2 | $ | 91.0 | |||||||||||||||||||
All other Rest of World | 23.1 | 19.2 | |||||||||||||||||||||
Total Rest of World | 222.3 | 110.2 | |||||||||||||||||||||
Inter-segment sales | (6.2) | (6.2) | |||||||||||||||||||||
Total Net Sales | $ | 769.0 | $ | 636.9 |
(dollars in millions) | ||||||||||||||||
Three Months June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
North America | ||||||||||||||||
Water heaters and related parts | $ | 396.8 | $ | 438.9 | $ | 844.6 | $ | 894.6 | ||||||||
Boilers and related parts | 41.0 | 48.0 | 82.5 | 90.6 | ||||||||||||
Water treatment products (1) | 42.7 | 37.1 | 86.3 | 60.6 | ||||||||||||
Total North America | 480.5 | 524.0 | 1,013.4 | 1,045.8 | ||||||||||||
Rest of World | ||||||||||||||||
China | $ | 172.7 | $ | 224.2 | $ | 263.7 | $ | 437.2 | ||||||||
All other Rest of World | 17.0 | 24.9 | 36.2 | 44.0 | ||||||||||||
Total Rest of World | 189.7 | 249.1 | 299.9 | 481.2 | ||||||||||||
Inter-segment sales | (6.3 | ) | (7.7 | ) | (12.5 | ) | (13.4 | ) | ||||||||
Total Net Sales | $ | 663.9 | $ | 765.4 | $ | 1,300.8 | $ | 1,513.6 | ||||||||
April 8, 2019 (dollars in millions) | ||||
Current assets, net of cash acquired | $ | 9.7 | ||
Property, plant and equipment | 8.6 | |||
Intangible assets | 60.4 | |||
Goodwill | 31.0 | |||
Total assets acquired | 109.7 | |||
Current liabilities | (2.7 | ) | ||
Net assets acquired | $ | 107.0 | ||
(dollars in millions) | ||||||||||||
Severance Expenses | Restructuring Expenses | Total | ||||||||||
Accrued severance and restructuring expenses, March 31, 2020 | $ | — | $ | — | $ | — | ||||||
Charges | 5.2 | 0.9 | 6.1 | |||||||||
Cash Payments | (2.2 | ) | (0.3 | ) | (2.5 | ) | ||||||
Accrued severance and restructuring expenses, June 30, 2020 | $ | 3.0 | $ | 0.6 | $ | 3.6 | ||||||
3. Leases |
(dollars in millions) | March 31, 2021 | December 31, 2020 | |||||||||
Liabilities | |||||||||||
Short term: Accrued liabilities | $ | 12.3 | $ | 11.1 | |||||||
Long term: Operating lease liabilities | 35.8 | 34.4 | |||||||||
Total operating lease liabilities | $ | 48.1 | $ | 45.5 | |||||||
Less: Rent incentives and deferrals | (3.9) | (3.9) | |||||||||
Assets | |||||||||||
Operating lease assets | $ | 44.2 | $ | 41.6 |
(dollars in millions) | ||||||||
June 30, 2020 | December 31, 2019 | |||||||
Liabilities | ||||||||
Short term: Accrued liabilities | $ | 11.5 | $ | 12.0 | ||||
Long term: Operating lease liabilities | 37.5 | 38.7 | ||||||
Total operating lease liabilities | $ | 49.0 | $ | 50.7 | ||||
Less: Rent incentives and deferrals | (3.8 | ) | (3.8 | ) | ||||
Assets | ||||||||
Operating lease assets | $ | 45.2 | $ | 46.9 | ||||
Lease Term and Discount Rate | March 31, 2021 | |||||||||
Weighted-average remaining lease term | ||||||||||
Weighted-average discount rate |
(dollars in millions) | Three months ended March 31, | |||||||||||||||||||
Lease Expense | Classification | 2021(1) | 2020(2) | |||||||||||||||||
Operating lease expense | Cost of products sold | $ | 1.0 | $ | 0.7 | |||||||||||||||
Selling, general and administrative expenses | 4.0 | 4.0 |
(dollars in millions) | ||||||||||
Three months ended June 30, | ||||||||||
Lease Expense | Classification | 2020 (1) | 2019 (2) | |||||||
Operating lease expense | Cost of products sold | $ | 0.8 | $ | 0.7 | |||||
Selling, general and administrative expenses | $ | 4.2 | $ | 4.1 |
(dollars in millions) | ||||||||||
Six months ended June 30, | ||||||||||
Lease Expense | Classification | 2020 (1) | 2019 (2) | |||||||
Operating lease expense | Cost of products sold | $ | 1.5 | $ | 1.3 | |||||
Selling, general and administrative expenses | $ | 8.2 | $ | 9.0 |
(dollars in millions) | (dollars in millions) | March 31, 2021 | |||||||
June 30, 2020 | |||||||||
2020 | $ | 7.0 | |||||||
2021 | 11.7 | 2021 | $ | 10.3 | |||||
2022 | 9.9 | 2022 | 11.2 | ||||||
2023 | 5.5 | 2023 | 6.7 | ||||||
2024 | 4.4 | 2024 | 5.6 | ||||||
After 2024 | 23.0 | ||||||||
2025 | 2025 | 4.0 | |||||||
After 2025 | After 2025 | 21.3 | |||||||
Total lease payments | 61.5 | Total lease payments | 59.1 | ||||||
Less: imputed interest | (12.5 | ) | Less: imputed interest | (11.0) | |||||
Present value of operating lease liabilities | $ | 49.0 | Present value of operating lease liabilities | $ | 48.1 | ||||
4. Inventories |
(dollars in millions) | (dollars in millions) | March 31, 2021 | December 31, 2020 | ||||||||||||||||
June 30, 2020 | December 31, 2019 | ||||||||||||||||||
Finished products | $ | 134.3 | $ | 136.8 | Finished products | $ | 149.2 | $ | 143.4 | ||||||||||
Work in process | 22.7 | 21.7 | Work in process | 21.9 | 21.8 | ||||||||||||||
Raw materials | 172.8 | 168.3 | Raw materials | 166.0 | 159.2 | ||||||||||||||
Inventories, at FIFO cost | 329.8 | 326.8 | Inventories, at FIFO cost | 337.1 | 324.4 | ||||||||||||||
LIFO reserve | (23.8 | ) | (23.8 | ) | LIFO reserve | (24.3) | (24.3) | ||||||||||||
$ | 312.8 | $ | 300.1 | ||||||||||||||||
Net inventory | $ | 306.0 | $ | 303.0 | |||||||||||||||
5. Product Warranties |
Three Months Ended June 30, | |||||||||||||||||||
(dollars in millions) | (dollars in millions) | Three Months Ended March 31, | |||||||||||||||||
2020 | 2019 | 2021 | 2020 | ||||||||||||||||
Balance at April 1, | $ | 135.3 | $ | 136.2 | |||||||||||||||
Balance at January 1 | Balance at January 1 | $ | 142.3 | $ | 134.3 | ||||||||||||||
Expense | 12.3 | 11.4 | Expense | 12.6 | 13.5 | ||||||||||||||
Claims settled | (11.6 | ) | (13.6 | ) | Claims settled | (13.3) | (12.5) | ||||||||||||
Balance at June 30, | $ | 136.0 | $ | 134.0 | |||||||||||||||
Balance at March 31 | Balance at March 31 | $ | 141.6 | $ | 135.3 |
Six Months Ended June 30, | ||||||||
(dollars in millions) | ||||||||
2020 | 2019 | |||||||
Balance at January 1, | $ | 134.3 | $ | 139.4 | ||||
Expense | 25.8 | 20.8 | ||||||
Claims settled | (24.1 | ) | (26.2 | ) | ||||
Balance at June 30, | $ | 136.0 | $ | 134.0 | ||||
6. Long-Term Debt |
7. Earnings per Share of Common Stock |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Denominator for basic earnings per share - weighted average shares | 161,208,194 | 166,825,601 | 161,539,991 | 167,311,995 | Denominator for basic earnings per share - weighted average shares | 161,526,733 | 161,871,788 | ||||||||||||||||||||||||||||||||
Effect of dilutive stock options and share units | 965,648 | 1,260,667 | 995,675 | 1,276,451 | Effect of dilutive stock options and share units | 1,258,590 | 1,025,817 | ||||||||||||||||||||||||||||||||
Denominator for diluted earnings per share | 162,173,842 | 168,086,268 | 162,535,666 | 168,588,446 | Denominator for diluted earnings per share | 162,785,323 | 162,897,605 | ||||||||||||||||||||||||||||||||
8. Stock Based Compensation |
Weighted- Avg. Per Share Exercise Price | Number of Options | Average Remaining Contractual Life | Aggregate Intrinsic Value (dollars in millions) | ||||||||||||||||||||
Outstanding at January 1, 2021 | $ | 43.01 | 2,785,654 | ||||||||||||||||||||
Granted | 60.82 | 367,025 | |||||||||||||||||||||
Exercised | 35.07 | (184,574) | |||||||||||||||||||||
Forfeited | 45.36 | (4,388) | |||||||||||||||||||||
Outstanding at March 31, 2021 | 45.70 | 2,963,717 | 7 years | $ | 64.9 | ||||||||||||||||||
Exercisable at March 31, 2021 | 43.21 | 1,882,018 | 6 years | $ | 45.9 |
Weighted- Avg. Per Share Exercise Price | Number of Options | Average Remaining Contractual Life | Aggregate Intrinsic Value (dollars in millions) | |||||||||||||
Outstanding at January 1, 2020 | $ | 37.64 | 2,728,350 | |||||||||||||
Granted | 42.39 | 784,300 | ||||||||||||||
Exercised | 14.79 | (271,844 | ) | |||||||||||||
Forfeited | 48.50 | (68,654 | ) | |||||||||||||
Outstanding at June 30, 2020 | 40.54 | 3,172,152 | 7 years | $ | 28.2 | |||||||||||
Exercisable at June 30, 2020 | 38.42 | 1,922,832 | 7 years | $ | 28.2 | |||||||||||
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Expected life (years) | 5.8 | 5.7 | |||||||||
Risk-free interest rate | 1.2 | % | 1.6 | % | |||||||
Dividend yield | 1.6 | % | 2.1 | % | |||||||
Expected volatility | 27.3 | % | 23.6 | % |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Expected life (years) | 5.7 | 5.5 | ||||||
Risk-free interest rate | 1.6 | % | 2.7 | % | ||||
Dividend yield | 2.1 | % | 1.6 | % | ||||
Expected volatility | 23.6 | % | 22.8 | % |
Number of Units | Weighted-Average Grant Date Value | Number of Units | Weighted-Average Grant Date Value | ||||||||||||||||
Issued and unvested at January 1, 2020 | 366,102 | $ | 49.92 | ||||||||||||||||
Issued and unvested at January 1, 2021 | Issued and unvested at January 1, 2021 | 426,786 | $ | 46.99 | |||||||||||||||
Granted | 169,539 | 42.39 | Granted | 100,153 | 60.82 | ||||||||||||||
Vested | (100,735 | ) | 49.21 | Vested | (89,079) | 60.54 | |||||||||||||
Forfeited | (10,656 | ) | 52.48 | Forfeited | (2,915) | 53.22 | |||||||||||||
Issued and unvested at June 30, 2020 | 424,250 | 46.93 | |||||||||||||||||
Issued and unvested at March 31, 2021 | Issued and unvested at March 31, 2021 | 434,945 | 47.34 |
9. Pensions |
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Service cost | $ | 0.4 | $ | 0.4 | |||||||||||||||||||
Interest cost | 3.6 | 5.7 | |||||||||||||||||||||
Expected return on plan assets | (12.0) | (13.0) | |||||||||||||||||||||
Amortization of unrecognized loss | 5.2 | 4.9 | |||||||||||||||||||||
Amortization of prior service cost | (0.1) | (0.1) | |||||||||||||||||||||
Defined benefit plan income | $ | (2.9) | $ | (2.1) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Service cost | $ | 0.3 | $ | 0.5 | $ | 0.7 | $ | 0.9 | ||||||||
Interest cost | 5.8 | 7.8 | 11.5 | 15.7 | ||||||||||||
Expected return on plan assets | (13.0 | ) | (14.4 | ) | (26.0 | ) | (28.7 | ) | ||||||||
Amortization of unrecognized loss | 5.0 | 4.0 | 9.9 | 8.0 | ||||||||||||
Amortization of prior service cost | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | ||||||||
Defined benefit plan income | $ | (2.0 | ) | $ | (2.2 | ) | $ | (4.1 | ) | $ | (4.3 | ) | ||||
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net sales | |||||||||||||||||||||||
North America | $ | 552.9 | $ | 532.9 | |||||||||||||||||||
Rest of World | 222.3 | 110.2 | |||||||||||||||||||||
Inter-segment | (6.2) | (6.2) | |||||||||||||||||||||
$ | 769.0 | $ | 636.9 | ||||||||||||||||||||
Segment earnings (losses) | |||||||||||||||||||||||
North America | $ | 130.4 | $ | 127.1 | |||||||||||||||||||
Rest of World | 11.8 | (42.2) | |||||||||||||||||||||
142.2 | 84.9 | ||||||||||||||||||||||
Corporate expense | (15.1) | (15.0) | |||||||||||||||||||||
Interest expense | (1.0) | (2.2) | |||||||||||||||||||||
Earnings before income taxes | 126.1 | 67.7 | |||||||||||||||||||||
Provision for income taxes | 28.4 | 16.0 | |||||||||||||||||||||
Net earnings | $ | 97.7 | $ | 51.7 | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net sales | ||||||||||||||||
North America | $ | 480.5 | $ | 524.0 | $ | 1,013.4 | $ | 1,045.8 | ||||||||
Rest of World | 189.7 | 249.1 | 299.9 | 481.2 | ||||||||||||
Inter-segment | (6.3 | ) | (7.7 | ) | (12.5 | ) | (13.4 | ) | ||||||||
$ | 663.9 | $ | 765.4 | $ | 1,300.8 | $ | 1,513.6 | |||||||||
Segment earnings | ||||||||||||||||
North America (1) | $ | 105.4 | $ | 122.9 | $ | 232.5 | $ | 238.9 | ||||||||
Rest of World (2) | (5.8 | ) | 22.4 | (48.0 | ) | 34.7 | ||||||||||
Inter-segment | (0.3 | ) | (0.1 | ) | (0.3 | ) | (0.1 | ) | ||||||||
99.3 | 145.2 | 184.2 | 273.5 | |||||||||||||
Corporate expense | (9.8 | ) | (9.6 | ) | (24.8 | ) | (24.3 | ) | ||||||||
Interest expense | (2.5 | ) | (3.4 | ) | (4.7 | ) | (5.4 | ) | ||||||||
Earnings before income taxes | 87.0 | 132.2 | 154.7 | 243.8 | ||||||||||||
Provision for income taxes | 19.2 | 30.1 | 35.2 | 52.4 | ||||||||||||
Net earnings | $ | 67.8 | $ | 102.1 | $ | 119.5 | $ | 191.4 | ||||||||
(1) includes severance and restructuring expenses of: | $ | 2.2 | $ | — | $ | 2.2 | $ | — | ||||||||
(2) includes severance and restructuring expenses of: | $ | 3.9 | $ | — | $ | 3.9 | $ | — |
Fair Value Measurement Using | March 31, 2021 | December 31, 2020 | |||||||||
Quoted prices in active markets for identical assets (Level 1) | $ | 87.0 | $ | 116.5 | |||||||
Significant other observable inputs (Level 2) | (3.0) | (4.3) |
(dollars in millions) | ||||||||
Fair Value Measurement Using | June 30, 2020 | December 31, 2019 | ||||||
Quoted prices in active markets for identical assets (Level 1) | $ | 126.0 | $ | 177.4 | ||||
Significant other observable inputs (Level 2) | (0.4 | ) | 6.9 |
12. Derivative Instruments |
(dollars in millions) | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||
Buy | Sell | Buy | Sell | ||||||||||||||||||||
British pound | $ | — | $ | 0.7 | $ | — | $ | 1.0 | |||||||||||||||
Canadian dollar | — | 59.8 | — | 79.7 | |||||||||||||||||||
Euro | 24.6 | — | 32.7 | — | |||||||||||||||||||
Mexican peso | 18.1 | — | 16.5 | — | |||||||||||||||||||
Total | $ | 42.7 | $ | 60.5 | $ | 49.2 | $ | 80.7 |
(dollars in millions) | ||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||
Buy | Sell | Buy | Sell | |||||||||||||
British pound | $ | — | $ | 0.6 | $ | — | $ | 1.3 | ||||||||
Canadian dollar | — | 39.6 | — | 49.7 | ||||||||||||
Euro | 24.6 | — | 36.0 | — | ||||||||||||
Mexican peso | 23.6 | — | 18.6 | — | ||||||||||||
Total | $ | 48.2 | $ | 40.2 | $ | 54.6 | $ | 51.0 | ||||||||
(dollars in millions) | Balance Sheet Location | March 31, 2021 | December 31, 2020 | ||||||||||||||
Foreign currency contracts | Other current assets | $ | 0.7 | $ | 2.7 | ||||||||||||
Accrued liabilities | (3.7) | (7.0) | |||||||||||||||
Total derivatives designated as hedging instruments | $ | (3.0) | $ | (4.3) |
(dollars in millions) | ||||||||||
Balance Sheet Location | June 30, 2020 | December 31, 2019 | ||||||||
Foreign currency contracts | Other current assets | $ | 1.6 | $ | 8.4 | |||||
Accrued liabilities | (1.9 | ) | (1.5 | ) | ||||||
Commodities contracts | Accrued liabilities | (0.1 | ) | — | ||||||
Total derivatives designated as hedging instruments | $ | (0.4 | ) | $ | 6.9 | |||||
Derivatives in ASC 815 cash flow hedging relationships | Amount of gain (loss) recognized in other comprehensive loss on derivatives | Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings | Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings | Derivatives in ASC 815 cash flow hedging relationships | Amount of (loss) gain recognized in other comprehensive loss on derivatives | Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings | Amount of (loss) gain reclassified from accumulated other comprehensive loss into earnings | |||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | (0.6 | ) | $ | 0.5 | Cost of products sold | $ | 0.5 | $ | — | Foreign currency contracts | $ | (2.9) | $ | 1.4 | Cost of products sold | $ | (0.3) | $ | 0.8 | ||||||||||||||||||||||||||||||||
Commodities contracts | 0.1 | (0.3 | ) | Cost of products sold | — | (0.8 | ) | Commodities contracts | 0 | (0.2) | Cost of products sold | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
$ | (2.9) | $ | 1.2 | $ | (0.3) | $ | 0.8 | |||||||||||||||||||||||||||||||||||||||||||||
$ | (0.5 | ) | $ | 0.2 | $ | 0.5 | $ | (0.8 | ) | |||||||||||||||||||||||||||||||||||||||||||
Derivatives in ASC 815 cash flow hedging relationships | Amount of gain (loss) recognized in other comprehensive loss on derivatives | Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings | Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings | |||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Foreign currency contracts | $ | 0.8 | $ | 0.6 | Cost of products sold | $ | 1.3 | $ | — | |||||||||||
Commodities contracts | (0.1 | ) | (0.5 | ) | Cost of products sold | — | (0.8 | ) | ||||||||||||
$ | 0.7 | $ | 0.1 | $ | 1.3 | $ | (0.8 | ) | ||||||||||||
13. Income Taxes |
16 15. Changes in Accumulated Other Comprehensive Loss by Component |
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||
2021 | 2020 | ||||||||||||||||
Cumulative foreign currency translation | |||||||||||||||||
Balance at beginning of period | $ | (48.1) | $ | (66.2) | |||||||||||||
Other comprehensive loss before reclassifications | (1.4) | (18.0) | |||||||||||||||
Balance at end of period | (49.5) | (84.2) | |||||||||||||||
Unrealized net gain (loss) on cash flow derivatives | |||||||||||||||||
Balance at beginning of period | 0.6 | 0.2 | |||||||||||||||
Other comprehensive (loss) gain before reclassifications | (2.2) | 0.9 | |||||||||||||||
Realized losses (gains) on derivatives reclassified to cost of products sold (net of income tax (benefit) provision of $(0.1) and $0.2 in 2021 and 2020, respectively) | 0.2 | (0.6) | |||||||||||||||
Balance at end of period | (1.4) | 0.5 | |||||||||||||||
Pension liability | |||||||||||||||||
Balance at beginning of period | (273.7) | (282.3) | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss:(1) | 3.8 | 3.6 | |||||||||||||||
Balance at end of period | (269.9) | (278.7) | |||||||||||||||
Accumulated other comprehensive loss, end of period | $ | (320.8) | $ | (362.4) | |||||||||||||
(1) Amortization of pension items: | |||||||||||||||||
Actuarial losses | $ | 5.2 | (2) | $ | 4.9 | (2) | |||||||||||
Prior year service cost | (0.1) | (2) | (0.1) | (2) | |||||||||||||
5.1 | 4.8 | ||||||||||||||||
Income tax benefit | (1.3) | (1.2) | |||||||||||||||
Reclassification net of income tax benefit | $ | 3.8 | $ | 3.6 |
(dollars in millions) | ||||||||
Three Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Cumulative foreign currency translation | ||||||||
Balance at beginning of period | $ | (84.2 | ) | $ | (49.0 | ) | ||
Other comprehensive income (loss) before reclassifications | 3.7 | (10.1 | ) | |||||
Balance at end of period | (80.5 | ) | (59.1 | ) | ||||
Unrealized net gain (loss) on cash flow derivatives | ||||||||
Balance at beginning of period | 0.5 | (0.8 | ) | |||||
Other comprehensive (loss) gain before reclassifications | (0.4 | ) | 0.1 | |||||
Realized (gains) losses on derivatives reclassified to cost of products sold (net of income tax provision (benefit) of $0.1 and ($0.2) in 2020 and 2019, respectively) | (0.4 | ) | 0.6 | |||||
Balance at end of period | (0.3 | ) | (0.1 | ) | ||||
Pension liability | ||||||||
Balance at beginning of period | (278.7 | ) | (282.3 | ) | ||||
Amounts reclassified from accumulated other comprehensive loss: (1) | 3.7 | 3.1 | ||||||
�� | ||||||||
Balance at end of period | (275.0 | ) | (279.2 | ) | ||||
Accumulated other comprehensive loss, end of period | $ | (355.8 | ) | $ | (338.4 | ) | ||
(1) Amortization of pension items: | ||||||||
Actuarial losses | $ | 5.0 | (2) | $ | 4.0 | (2) | ||
Prior year service cost | (0.1 | ) (2) | (0.1 | ) (2) | ||||
4.9 | 3.9 | |||||||
Income tax benefit | (1.2 | ) | (0.8 | ) | ||||
Reclassification net of income tax benefit | $ | 3.7 | $ | 3.1 | ||||
(dollars in millions) | ||||||||
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Cumulative foreign currency translation | ||||||||
Balance at beginning of period | $ | (66.2 | ) | $ | (64.9 | ) | ||
Other comprehensive (loss) income before reclassifications | (14.3 | ) | 5.8 | |||||
Balance at end of period | (80.5 | ) | (59.1 | ) | ||||
Unrealized net gain on cash flow derivatives | ||||||||
Balance at beginning of period | 0.2 | (0.7 | ) | |||||
Other comprehensive gain before reclassifications | 0.5 | — | ||||||
Realized (gains) losses on derivatives reclassified to cost of products sold (net of income tax provision (benefit) of $0.3 and ($0.2) in 2020 and 2019, respectively) | (1.0 | ) | 0.6 | |||||
Balance at end of period | (0.3 | ) | (0.1 | ) | ||||
Pension liability | ||||||||
Balance at beginning of period | (282.3 | ) | (285.2 | ) | ||||
Amounts reclassified from accumulated other comprehensive loss: (1) | 7.3 | 6.0 | ||||||
Balance at end of period | (275.0 | ) | (279.2 | ) | ||||
Accumulated other comprehensive loss, end of period | $ | (355.8 | ) | $ | (338.4 | ) | ||
(1) Amortization of pension items: | ||||||||
Actuarial losses | $ | 9.9 | (2) | $ | 8.0 | (2) | ||
Prior year service cost | (0.2 | ) (2) | (0.2 | ) (2) | ||||
9.7 | 7.8 | |||||||
Income tax benefit | (2.4 | ) | (1.8 | ) | ||||
Reclassification net of income tax benefit | $ | 7.3 | $ | 6.0 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Earnings (GAAP) | $ | 67.8 | $ | 102.1 | $ | 119.5 | $ | 191.4 | ||||||||
Severance and restructuring expenses, before tax | 6.1 | — | 6.1 | — | ||||||||||||
Tax effect of severance and restructuring expenses | (1.1 | ) | — | (1.1 | ) | — | ||||||||||
Adjusted Earnings | $ | 72.8 | $ | 102.1 | $ | 124.5 | $ | 191.4 | ||||||||
Diluted EPS (GAAP) | $ | 0.42 | $ | 0.61 | $ | 0.74 | $ | 1.14 | ||||||||
Severance and restructuring expenses, per diluted share | 0.04 | — | 0.04 | — | ||||||||||||
Tax effect of severance and restructuring expenses per diluted share | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
Adjusted EPS | $ | 0.45 | $ | 0.61 | $ | 0.77 | $ | 1.14 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Segment Earnings (GAAP) | ||||||||||||||||
North America | $ | 105.4 | $ | 122.9 | $ | 232.5 | $ | 238.9 | ||||||||
Rest of World | (5.8 | ) | 22.4 | (48.0 | ) | 34.7 | ||||||||||
Inter-segment earnings elimination | (0.3 | ) | (0.1 | ) | (0.3 | ) | (0.1 | ) | ||||||||
Total Segment Earnings (GAAP) | $ | 99.3 | $ | 145.2 | $ | 184.2 | $ | 273.5 | ||||||||
Adjustments | ||||||||||||||||
North America (1) | $ | 2.2 | $ | — | $ | 2.2 | $ | — | ||||||||
Rest of World (2) | 3.9 | — | 3.9 | — | ||||||||||||
Total Adjustments | $ | 6.1 | $ | — | $ | 6.1 | $ | — | ||||||||
Adjusted Segment Earnings | ||||||||||||||||
North America | $ | 107.6 | $ | 122.9 | $ | 234.7 | $ | 238.9 | ||||||||
Rest of World | (1.9 | ) | 22.4 | (44.1 | ) | 34.7 | ||||||||||
Inter-segment earnings elimination | (0.3 | ) | (0.1 | ) | (0.3 | ) | (0.1 | ) | ||||||||
Total Adjusted Segment Earnings | $ | 105.4 | $ | 145.2 | $ | 190.3 | $ | 273.5 | ||||||||
2020 Guidance | 2019 | |||||||
Diluted EPS (GAAP) | $ | 1.69 - 1.83 | $ | 2.22 | ||||
Severance and Restructuring expenses per diluted share, net of tax | 0.03 | — | ||||||
Adjusted EPS | $ | 1.72 - 1.86 | $ | 2.22 | ||||
2021 Guidance | 2020 | ||||||||||
Diluted EPS (GAAP) | $2.55-2.65 | $ | 2.12 | ||||||||
Severance and restructuring expenses per diluted share, net of tax | — | 0.04 | |||||||||
Adjusted EPS | $2.55-2.65 | $ | 2.16 |
ISSUER PURCHASES OF EQUITY SECURITIES | |||||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that may yet be Purchased Under the Plans or Programs | |||||||||||||||||||
January 1 - January 31, 2021 | — | $ | — | — | 8,613,824 | ||||||||||||||||||
February 1 - February 28, 2021 | 473,000 | 59.59 | 473,000 | 8,140,824 | |||||||||||||||||||
March 1 - March 31, 2021 | 602,200 | 64.53 | 602,200 | 7,538,624 |
Exhibit
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has authorized this report to be signed on its behalf by the undersigned.
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